The investment, which has been made in Munjal’s personal capacity, is part of the Rs 2,000 crore corpus that the social venture capital firm Aavishkaar is targeting for its new investment vehicleBiswarup Gooptu | ET Bureau | April 20, 2017, 16:54 IST

The investment, which has been made in Munjal’s personal capacity, is part of the Rs 2,000 crore corpus that the social venture capital firm is targeting for its new investment vehicle. The Bharat Fund, Aavishkaar’s sixth fund, is a SEBI-registered Category-II Alternative Investment Fund.

“At this stage in India’s evolution, it is clear that for the entire country to develop, rural areas and underprivileged citizens must become part of the economic miracle, not through charity, but through real opportunities,” Munjal said in an official statement.

The Bharat Fund, according to earlier media reports, also counts the government’s Rs 10,000 crore Fund-of-Funds, managed by SIDBI, as an Limited Partner (LP).

The investment, which was announced on Thursday, comes a little less than four months after the the Aavishkaar-IntelleCap Group raised $25 million from Triodos Investment Management, the investment arm of European lender Triodos Bank, and an additional $10 million from the Shell Foundation, the independent charity established by the Shell Group.

“We know that Mr Sunil Kant Munjal does not normally make announcements of his investments, unless there is a compliance of a market requirement. But in this case, he agreed with us that this is something that needs to be encouraged, especially amongst other corporates,” said Vineet Rai, chief executive, Aavishkaar-Intellecap Group.

“Currently, most of India’s development has taken place in urban areas and in medium and large enterprises. So it is heartening that a number of small and brave entrepreneurs are getting into projects aimed at the Indian heartland. It is our turn to step in, provide support, and help create prosperity at the bottom of the pyramid,” Munjal said.

The Aavishkaar-IntelleCap Group, which currently manages assets of about $400 million, is one of the world's largest impact investors, and currently runs multiple social venture capital funds, and has also begun to make investments outside India, in countries such as Indonesia, Sri Lanka and Bangladesh.

For Munjal, who also spearheads a cultural initiative, Serendipity Arts Trust, the latest investment follows his decision to back Nykaa.com, an online luxury beauty retailer founded by investment banker-turned entrepreneur Falguni Nayar.

The Aavishkaar Bharat Fund is expected to start investing in ventures after it makes the first close of the fund, which is anticipated to take place between the June to August period later this year.

“With this investment we can continue to build and scale enterprises that are working at the grassroots, whilst simultaneously multiplying their impact outcomes,” Rai added.